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"Since going public in July 2014, we have reported six consecutive quarters of year-over-year revenue and Adjusted EBITDA growth. As we implement our mobile strategy across all our business units, we expect the convenience of services we bring to our customers to result in continued growth and profitability."

MEMPHIS, Tenn.--(BUSINESS WIRE)--ServiceMaster
Global Holdings, Inc. (NYSE: SERV), a leading provider of
essential residential and commercial services, today announced
preliminary unaudited third-quarter 2015 results. The company reported a
year-over-year revenue increase of 6 percent driven by strong organic
growth at American Home Shield (“AHS”), increased sales of new services
at Terminix and price increases.

Third-quarter 2015 net income was $49 million or $0.36 per share,
including a loss on extinguishment of debt of $31 million related to the
company’s redemption of its 7% Senior Notes due 2020, versus a loss of
$4 million or ($0.03) per share in the same period in 2014.

Third-quarter 2015 adjusted net income was $74 million, or $0.54 per
share, versus $61 million, or $0.46 per share, for the same period in
2014.

Third-quarter 2015 Adjusted EBITDA was $174 million, a year-over-year
increase of $17 million or 11 percent driven largely by increases at AHS
and Terminix of $13 million and $5 million, respectively.

Rob Gillette, ServiceMaster’s chief executive officer, noted “Since
going public in July 2014, we have reported six consecutive quarters of
year-over-year revenue and Adjusted EBITDA growth. As we implement our
mobile strategy across all our business units, we expect the convenience
of services we bring to our customers to result in continued growth and
profitability.”

Preliminary Consolidated Performance

Three Months Ended September 30,

Nine Months Ended September 30,

$ millions

2015

2014

B/(W)

2015

2014

B/(W)

Revenue

$

706

$

664

$

42

$

1,993

$

1,880

$

113

YoY growth

6.3

%

6.0

%

Gross Margin

338

320

18

957

897

60

% of revenue

47.9

%

48.2

%

(0.3

)

pts

48.0

%

47.7

%

0.3

pts

SG&A

(178

)

(176

)

(2

)

(512

)

(505

)

(7

)

% of revenue

25.2

%

26.5

%

1.3

pts

25.7

%

26.9

%

1.2

pts

Income (Loss) from Continuing Operations before Income Taxes

83

(5

)

88

237

48

189

% of revenue

11.8

%

(0.8

)

%

12.6

pts

11.9

%

2.6

%

9.3

pts

Income (Loss) from Continuing Operations

50

(3

)

53

145

22

123

% of revenue

7.1

%

(0.5

)

%

7.6

pts

7.3

%

1.2

%

6.1

pts

Net Income (Loss)

49

(4

)

53

144

(76

)

220

% of revenue

6.9

%

(0.6

)

%

7.5

pts

7.2

%

(4.0

)

%

11.2

pts

Adjusted Net Income(1)

74

61

13

201

135

66

% of revenue

10.5

%

9.2

%

1.3

pts

10.1

%

7.2

%

2.9

pts

Adjusted EBITDA(2)

174

157

17

498

443

55

% of revenue

24.6

%

23.6

%

1.0

pts

25.0

%

23.6

%

1.4

pts

Pre-Tax Unlevered Free Cash Flow(3)

125

120

5

463

387

76

Preliminary Segment Performance

Revenue and Adjusted EBITDA for each reportable segment and
Corporate were as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA

$ millions

2015

B/(W) vs. PY

2015

B/(W) vs. PY

2015

B/(W) vs. PY

2015

B/(W) vs. PY

Terminix

$

372

$

19

$

82

$

5

$

1,103

$

54

$

272

$

24

YoY growth / % of revenue

5.4

%

22.0

%

0.2

pts

5.1

%

24.7

%

1.1

pts

American Home Shield

275

30

74

13

711

74

174

30

YoY growth / % of revenue

12.2

%

26.9

%

2.0

pts

11.6

%

24.5

%

1.9

pts

Franchise Services Group

58

(6

)

20

1

178

(11

)

58

—

YoY growth / % of revenue

(9.4

)

%

34.5

%

4.8

pts

(5.8

)

%

32.6

%

1.9

pts

Corporate(4)

1

(1

)

(1

)

—

2

(3

)

(6

)

1

Total

$

706

$

42

$

174

$

17

$

1,993

$

113

$

498

$

55

YoY growth / % of revenue

6.3

%

24.6

%

1.0

pts

6.0

%

25.0

%

1.4

pts

A reconciliation of income from continuing operations to both adjusted
net income and Adjusted EBITDA, as well as a reconciliation of net cash
provided from operating activities from continuing operations to pre-tax
unlevered free cash flow, are set forth below in this press release.

For the nine months ended September 30, 2015, net cash provided from
operating activities from continuing operations increased to $229
million from $132 million for the nine months ended September 30, 2014.

Net cash used for investing activities from continuing operations was
$34 million for the nine months ended September 30, 2015 compared to $51
million for the nine months ended September 30, 2014.

Net cash used for financing activities from continuing operations was
$314 million for the nine months ended September 30, 2015 compared to
$274 million for the nine months ended September 30, 2014.

Pre-tax unlevered free cash flow(3) was $463 million for the
nine months ended September 30, 2015, compared to $387 million for the
nine months ended September 30, 2014.

Other Matters

On August 17, 2015, the company redeemed the remaining outstanding $488
million of its 7% Senior Notes due 2020. As part of the transaction, the
company paid $30 million in fees and pre-payment premium. To redeem the
$488 million 7% Senior Notes, the company used $118 million in cash and
incurred incremental borrowings of $400 million under its term loan.

Full-Year 2015 Outlook

The company anticipates that revenue will be between $2,580 million and
$2,590 million, a 5 percent increase compared to 2014. Adjusted EBITDA
is anticipated to be $620 million for the full-year 2015, an increase of
11 percent compared to 2014.

Third-Quarter 2015 Earnings Conference Call

The company will discuss its third-quarter 2015 operating results during
a conference call at 8 a.m. central time today, November 3, 2015. To
participate on the conference call, interested parties should call
888.225.2695 (or international participants, 303.223.4364).
Additionally, the conference call will be available via webcast. A slide
presentation highlighting the company’s results and key performance
indicators will also be available. To participate via webcast and view
the slide presentation, visit the company’s investor
relations home page.

The call will be available for replay until December 3, 2015. To access
the replay of this call, please call 800.633.8284 and enter reservation
number 21780085 (international participants: 402.977.9140, reservation
number 21780085). You may also review the webcast on the company’s investor
relations home page.

About ServiceMaster

ServiceMaster Global Holdings, Inc. is a leading provider of essential
residential and commercial services, operating through an extensive
service network of more than 8,000 company-owned locations and franchise
and license agreements. The company’s portfolio of well-recognized
brands includes American Home Shield (home warranties), AmeriSpec (home
inspections), Furniture Medic (furniture repair), Merry Maids
(residential cleaning), ServiceMaster Clean (janitorial), ServiceMaster
Restore (disaster restoration) and Terminix (termite and pest control).
The company is headquartered in Memphis, Tenn. Go to www.servicemaster.com
for more information about ServiceMaster or follow the company at twitter.com/ServiceMaster
or Facebook.com/ServiceMaster.

Information Regarding Forward-Looking Statements

This press release contains forward-looking statements and cautionary
statements. Some of the forward-looking statements can be identified by
the use of forward-looking terms such as “believes,” “expects,” “may,”
“will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,”
“projects,” “is optimistic,” “intends,” “plans,” “estimates,”
“anticipates” or other comparable terms. Forward-looking statements are
subject to known and unknown risks and uncertainties, many of which may
be beyond our control, including, without limitation, the risks and
uncertainties discussed in the “Risk Factors” and “Information Regarding
Forward-Looking Statements” sections in the company’s reports filed with
the U.S. Securities and Exchange Commission. We caution you that
forward-looking statements are not guarantees of future performance or
outcomes and that actual performance and outcomes, including, without
limitation, our actual results of operations, financial condition and
liquidity, and the development of the market segments in which we
operate, may differ materially from those made in or suggested by the
forward-looking statements contained in this press release.

Additional factors that could cause actual results and outcomes to
differ from those reflected in forward-looking statements include,
without limitation, the effects of our substantial indebtedness; changes
in interest rates, because a significant portion of our indebtedness
bears interest at variable rates; lawsuits, enforcement actions and
other claims by third parties or governmental authorities; compliance
with, or violation of environmental health and safety laws and
regulations; weakening general economic conditions; weather conditions
and seasonality; the success of our business strategies, and costs
associated with restructuring initiatives. The company assumes no
obligation to update the information contained herein, which speaks only
as of the date hereof.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures.
Non-GAAP measures should not be considered as an alternative to GAAP
financial measures. Non-GAAP measures may not be calculated or
comparable to similarly titled measures used by other companies. See
non-GAAP reconciliations below in this press release for a
reconciliation of these measures to the most directly comparable GAAP
financial measures. Adjusted EBITDA, adjusted net income and pre-tax
unlevered free cash flow are not measurements of the company’s financial
performance under GAAP and should not be considered as an alternative to
net income or any other performance measures derived in accordance with
GAAP or as an alternative to net cash provided by operating activities
or any other measures of the company’s cash flow or liquidity. We
believe these non-GAAP financial measures are useful for investors,
analysts and other interested parties as it facilitates
company-to-company operating and financial condition performance
comparisons by excluding potential differences caused by variations in
capital structures, taxation, the age and book depreciation of
facilities and equipment, restructuring initiatives, consulting
agreements and equity-based, long-term incentive plans.

_________________________________________________

(1) Adjusted net income is defined by the company as income (loss) from
continuing operations before: amortization expense; impairment of
software and other related costs; consulting agreement termination fees;
restructuring charges; gain on sale of Merry Maids branches; management
and consulting fees; loss on extinguishment of debt; and the tax impact
of all of the aforementioned adjustments. The company’s definition of
adjusted net income may not be comparable to similarly titled measures
of other companies.

(2) Adjusted EBITDA is defined as income (loss) from continuing
operations before: depreciation and amortization expense; non-cash
impairment of software and other related costs; non-cash stock-based
compensation expense; restructuring charges; gain on sale of Merry Maids
branches; management and consulting fees; consulting agreement
termination fees; provision (benefit) for income taxes; loss on
extinguishment of debt; interest expense; and other non-operating
expenses. The company’s definition of Adjusted EBITDA may not be
comparable to similarly titled measures of other companies.

The following table presents reconciliations of Adjusted EBITDA to
Income from Continuing Operations for the periods presented.

Three Months Ended

Nine Months Ended

September 30,

September 30,

(In millions)

2015

2014

2015

2014

Terminix

$

82

$

77

$

272

$

248

American Home Shield

74

61

174

144

Franchise Services Group

20

19

58

58

Corporate

(1

)

(1

)

(6

)

(7

)

Adjusted EBITDA

$

174

$

157

$

498

$

443

Depreciation and amortization expense

(18

)

(25

)

(66

)

(76

)

Non-cash impairment of software and other related costs

—

—

—

(47

)

Non-cash stock-based compensation expense

(3

)

(2

)

(8

)

(5

)

Restructuring charges

(2

)

(1

)

(4

)

(7

)

Gain on sale of Merry Maids branches

3

—

5

—

Management and consulting fees

—

—

—

(4

)

Consulting agreement termination fees

—

(21

)

—

(21

)

Provision for income taxes

(32

)

3

(91

)

(26

)

Loss on extinguishment of debt

(31

)

(65

)

(58

)

(65

)

Interest expense

(41

)

(49

)

(128

)

(171

)

Other non-operating expenses

—

1

(3

)

—

Income (Loss) from Continuing Operations

$

50

$

(3

)

$

145

$

22

The table below presents selected operating metrics related to renewable
customer counts and customer retention for our Terminix and American
Home Shield segments.

As of September 30,

2015

2014((1))

Terminix

(Reduction) Growth in Pest Control Customers

(2

)

%

—

%

Pest Control Customer Retention Rate

79

%

80

%

Reduction in Termite and Other Services Customers

(2

)

%

(3

)

%

Termite and Other Services Customer Retention Rate

85

%

85

%

American Home Shield

Growth in Home Warranties

7

%

13

%

Customer Retention Rate

75

%

75

%

(1) As of September 30, 2014, excluding the Home Security of America
(“HSA”) accounts acquired on February 28, 2014, the growth in home
warranties was 4 percent, and, excluding all HSA accounts, the customer
retention rate for our American Home Shield segment was 76 percent.

Terminix Segment

Revenue by service line is as follows:

Three Months Ended

% of

September 30,

Revenue

(In millions)

2015

2014

2015

Pest Control

$

217

$

202

58

%

Termite and Other Services

135

133

36

Other

21

18

6

Total revenue

$

372

$

353

100

%

Termite renewal revenue comprised 51 percent of total revenue from
Termite and Other Services for the three months ended September 30, 2015
and 2014.